Watch out for more volatility.
US bond auction today was terrible and 10-year bond demand was so low some bills were offed with a yield of 2.66%. In perspective, the current yield for 10-year bonds is 2.16%. And this despite FED with clear intent to cut rates. Bonds should be rocketing right now due to the rate cut. The market is currently backwards: bond prices tanking at a time of rate cuts and before that bonds rallying with stocks? Well see what happens but some very odd things are happening and the list keeps getting longer.
US bond auction today was terrible and 10-year bond demand was so low some bills were offed with a yield of 2.66%. In perspective, the current yield for 10-year bonds is 2.16%. And this despite FED with clear intent to cut rates. Bonds should be rocketing right now due to the rate cut. The market is currently backwards: bond prices tanking at a time of rate cuts and before that bonds rallying with stocks? Well see what happens but some very odd things are happening and the list keeps getting longer.
